PALMOILMAGAZINE, SINGAPORE – As of 30 June 2024, Indofood Agri Resources Ltd. (IndoAgri) successfully managed a total plantation area of 293,683 hectares, with 245,283 hectares dedicated to palm oil cultivation. PT SIMP oversaw the majority, managing 152,793 hectares, while PT Lonsum cultivated the remaining 92,490 hectares.
In its first-half 2024 (1H24) performance report, fresh fruit bunch (FFB) production from core plantations and crude palm oil (CPO) output saw a slight 1% year-on-year (YoY) decline. However, the CPO extraction rate remained steady at 20.6%.
IndoAgri’s financial report for 1H24 revealed a 7% YoY drop in sales, primarily due to lower palm oil product volumes and a decline in the average selling price (ASP) of edible oils and fats (EOF). Despite this, the company’s net profit after tax (NPAT) surged by 581% YoY, driven by higher gross profits, gains from foreign exchange, an increase in biological asset values, and reduced financial expenses. Some of these gains were offset by higher losses from joint ventures and increased income taxes.
As in the official statement to Palmoilmagazine.com, to face the future challenges, IndoAgri decided some strategic keys in 2024 such as, the focus on plantation management to increase FFB production, improve cost control, innovate to increase plantation productivity, and prioritize capital investment in the critical areas.
In EOF, IndoAgri would keep focusing on the increasing selling volume and recovery through the competitive price strategies, taking advantages on population development trend and income per capita in Indonesia.
“By the clear and on target strategies, IndoAgri would be optimist to get positive performance even though palm oil production is challenging,” the company noted as quoted from its official presentation. (P2)
